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Korean Law Demystified!

‘You’re Hired.’ Four Minutes Later: ‘Actually, You’re Not…’ — Korean Court Calls It Unfair Dismissal

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A recent decision from the Seoul Administrative Court confirms that once an employer notifies a candidate of acceptance, a valid employment relationship may already exist. Canceling the hire moments later by text message can amount to unlawful dismissal.

Key Facts

  • A fintech and internet platform company (Company A) posted a job advertisement seeking someone to lead global strategy and business development.
  • Applicant B applied and successfully completed two rounds of interviews.
  • On the day of the decision:
    • 11:56 AM — Company A sent a text message informing B that they had passed and were hired.
    • 12:00 PM — Only four minutes later, the company sent another message canceling the hiring.

Labor Commission Proceedings

  • B filed a claim with the Seoul Regional Labor Relations Commission, alleging unfair cancellation of employment.
  • The commission ruled in B’s favor.
  • Company A appealed to the National Labor Relations Commission, but the decision was upheld.
  • The company then filed a lawsuit seeking to overturn the administrative ruling in court.

Employer’s Arguments

Company A argued that:

  • Labor law should not apply because:
    • The job was intended for a subsidiary (Company C) with fewer than five employees, which would fall outside certain protections of the Labor Standards Act.
  • B was not a “worker” under the Act:
    • The company claimed it intended to hire B as a professional executive (전문경영인) rather than as a regular employee.

Court’s Findings

The court rejected the company’s arguments and ruled the cancellation constituted unfair dismissal.

1. The Parent Company and Subsidiary Were Effectively One Workplace

  • The court found it difficult to treat Company A and subsidiary C as separate workplaces.
  • Reasons included:
    • C operated in a very small leased office space (about 3 pyeong / ~10 m²).
    • Company A’s website directly promoted C’s travel insurance platform with a dedicated link.
  • The businesses appeared operationally integrated, meaning their employee counts should be combined.
  • Once combined, the workforce exceeded five employees, making the Labor Standards Act applicable.

2. The Applicant Was Legally a “Worker”

The court held that a labor contract had already been formed.

  • The job advertisement = invitation to offer
  • B’s application = offer
  • Company A’s hiring message = acceptance

Because acceptance was communicated, a binding employment contract was already established.

Additional findings:

  • The job posting did not mention hiring a professional executive.
  • The interview process never explained such a role.
  • A high salary alone does not negate worker status.
  • The employer’s claim of a mistaken plan to appoint B as a subsidiary executive lacked evidence.

3. Canceling the Hire Was Legally a Dismissal

  • Once the employment contract existed, canceling the hiring effectively constituted a dismissal.
  • Under the Labor Standards Act, dismissals must follow statutory procedures, including written notice.
  • Sending a unilateral text message canceling the job did not satisfy legal requirements.

Final Outcome

  • The Seoul Administrative Court dismissed the company’s lawsuit.
  • The earlier labor commission ruling recognizing unfair dismissal remained valid.

Why This Case Matters

This ruling highlights several important principles in Korean labor law:

  • A hiring notification can legally finalize an employment contract.
  • “Rescinding” a job offer after acceptance may legally count as dismissal.
  • Employers cannot avoid labor protections by superficially splitting companies into separate entities.
  • Even executive-level hires can still qualify as workers depending on the circumstances.

Article: https://www.lawtimes.co.kr/news/articleView.html?idxno=216975

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